Reinsurance and insurance products and services provider RenaissanceRe Holdings Ltd. (RNR), Tuesday posted a profit for the fourth quarter compared to a loss last year, reflecting relatively low level of insured catastrophe losses, favorable development on prior year reserves and solid investment results.
Pembroke,Bermuda-based Renaissance's fourth quarter net income available to common shareholders was $211.8 million or $3.38 per share compared to a net loss of $55.2 million or $0.91 per share in the year-ago period.
Operating income available to common shareholders surged to $177.7 million or $2.82 per share from $28.7 million or $0.47 per share in the fourth quarter of 2008.
Results for the quarter excluded net realized and unrealized gains on fixed maturity investments of $35.4 million and net other-than-temporary impairments of $1.3 million. In the prior year quarter results excluded net realized losses on fixed maturity investments of $17.6 million and net other-than-temporary impairments of $66.3 million.
On average, 13 analysts polled by Thomson Reuters expected the company to report profit of $2.50 per share for the quarter. Analysts' estimates typically exclude one-time items.
In the current quarter net investment income was $60.7 million compared to a loss of $82.7 million a year-ago and net realized and unrealized gains on fixed maturity investments was $35.3 million compared to a loss of $17.6 million in the prior year quarter.
Total revenues for the fourth quarter surged to $396.7 million from $149.9 million in comparable quarter last year.
Analysts expected the company to generate revenue of $347.91 million for the fourth quarter.
Gross premiums written plunged to $73 million from $161.6 million, reflecting a $63.6 million decrease in the company's Reinsurance segment and a $24.4 million decrease in the Individual Risk segment.
The company in the fourth quarter generated $184.5 million of underwriting income and had a combined ratio of 37.7% compared to $205.7 million on a combined ratio of 36.1%, primarily driven by a low level of insured catastrophes combined with $75.1 million of favorable development on prior year reserves in the quarter.
Net premium written decreased to $53 million from $142 million in the year-ago period. Net premiums earned edged down to $296.2 million from $321.9 million in the same quarter last year.
Annualized return on average common equity for the fourth quarter was 27.1%, compared to negative 9.2% in the prior year period. The company recorded an annualized operating return on average common equity of 22.7% in the fourth quarter, up from 4.8% last year quarter. Book value per share rose 5%, to $51.68, from a 0.5% decrease in the year-ago quarter.
For the full year, the company reported net income available to common shareholders of $838.8 million or $13.40 per share compared to a loss of $13.2 million or $0.21 per share a year-ago. Operating income available to common shareholders surged to $768.2 million or $12.2 per share from $193.0 million or $3.04 share last year. Total revenue for the full year increased to $1.67 billion from $1.23 billion in the prior year. Analysts expected earnings of $11.97 per share on revenues of $1.68 billion for the full year.
RNR closed Tuesday's regular trading session at $52.26, up $0.83 or 1.61% on a volume of 0.39 million shares on the NYSE.
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